Investor and Industry Perspectives on Investment Advisers and Broker-Dealers

by Hung, Angela A.; Clancy, Noreen; Dominitz, Jeff; Talley, Eric; Berrebi, Claude

• ISBN13: 9780833044037
• ISBN10: 0833044036
• Format: Paperback
• Copyright: 2008-03-25
• Publisher: RAND Corporation

Summary

In theory, financial professionals are relatively distinct: A broker-dealer conducts transactions in securities on behalf of itself and others; and an investment adviser provides advice to others regarding securities. Different laws regulate each type of professional, but boundaries have blurred. This report examines current business practices and investor understanding of each type.

Table of Contents

Introduction	p. 1
Regulatory and legal background	p. 7
View of the industry from published sources	p. 23
Insights from industry data	p. 35
Documentation and information provided by firms	p. 63
Investors' level of understanding	p. 87
Conclusions	p. 115
Descriptions of regulatory filings, data sets, and use of the data to identify dual and affiliate activity	p. 119
Other retail providers of financial services	p. 127
Attributes of investment advisers and broker-dealers	p. 129
Additional detail on sampling method of document collection	p. 153
Disclosures by type and information source	p. 161
American life panel	p. 165
Detailed results of household survey and focus groups	p. 167
Supplemental analysis of industry data from 2001 to 2006	p. 185
References	p. 199
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